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Hi Ben,
I'm interested in learning more about this
indicator. Could you give an example of how
you trade it?
Thanks in advance.
Ray Raffurty
<BLOCKQUOTE
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----- Original Message -----
<DIV
style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black">From:
<A title=profitok@xxxxxxxxxxxxx
href="mailto:profitok@xxxxxxxxxxxxx";>profitok
To: <A title=realtraders@xxxxxxxxxxxxxxx
href="mailto:realtraders@xxxxxxxxxxxxxxx";>realtraders@xxxxxxxxxxxxxxx
Sent: Thursday, January 24, 2002 8:35
AM
Subject: Re: [RT] Option Sentiment
Indicator
AlexI have lost $500000 between 1973
and 1987 in the option game,,and FINALLY figured out how
to decide at what spice an index or stockwill close on
expiration dayit is very simple at that is what you want
reported hourlythe open interest for example for the
qqq Feb. 38 put compare to theopen interest of the
38 callthe same for 39 and 40and same for 37 36 and 35(a
total of 5 above current price and 5 under current price)what you will see
is that when put open interest is 5 times and above ofthe call
open interest that price CAN be broken intra day but not on
aclosing bases,,a 7 put to 1 call ratio would
be VERY unlikely to have penetratedintra
dayand 10 and above I would bet my home on it to
not be traded under,,this would be very useful as one would
know the MAJOR support andresistance and sell
calls when we get close to resistance or buy putsany questions?nice
dayBen----- Original Message -----From: "Jacobson, Alex"
<AJacobson@xxxxxxxxxxxxxx>To:
<realtraders@xxxxxxxxxxxxxxx>Sent: Thursday, January 24, 2002 10:32
AMSubject: [RT] Option Sentiment Indicator> Hey list .. I'd
like your input on a proposed new sentiment indicator.>> Here at
the ISE all of our orderflow is electronic .... retail,> institutional,
professional ... it's all electronic. What we are thinking> about
doing is taking periodic snapshots (maybe every 10 seconds) of
our> completed orderflow. Orders to buy calls or sell puts would
be considered> bullish and orders to buy puts and sell calls would be
considered bearish.> The data may or may not be weighted by the size of
the orders .. too early> to tell. Some folks have suggested
weighting the data based on mostactive> issues as
well.>> In effect if in the 10 second window we completed 500
bullish orders and400> bearish orders the indicator would be 1.25
.... again scale issues are yet> to be worked out. Zero numbers
would a problem and we are working outsome> thoughts on that.
It has never occurred, but it is not impossible.>> In effect
this would create a pseudo tiki type indicator based on option> orders
completed ....... tiki has some advantages because of market cap>
issues.>> I'd appreciate hearing your comments.>>
Alex Jacobson> Vice President Business Development> I S
E> 212 897 8125> 212 425 4926 (FAX)> 877 7209918
(SKYPAGE)> ajacobson@xxxxxxxxxxxxxx>>>> To
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